the fixed rate length is always a gamble, just like having any fixed rate contract like energy and mobile phone. The rate can go up or down the next day. I was offered 4.27 which was by far the cheapest till the BoE dropped the rate which I grabbed a 4.01, not before spending some cash on paper work to switch mortgage providers.. the next month rates went over 5%.
My brother who was self employed never fixed any of his mortgages and paid them at variable rate thought-out the 1990s to 2010, that’s the gamble he took when rates was low.. he paid large chucks into one, while paying the interest only on the others, till one was paid off and then he moved over to the next. At one point he had 4 mortgages.. hardly any pension (even now) that he’s retired, but his house being rented out and his business being leased out his his pension.
The two aspects that you can some what control, that will definitely lower the amount you pay back for your house.. which is the outcome that we all want…. Borrow less money and borrow it for shorter period.. those will have a much greater impact than a few percentage points in the rates.
we here discussing rates but unless one of us is on the BoE board, we have little control over it, apart from spending cash or time to find the best one.
Remember that your house is a tool to keep you and your family safe… unless you are planned to rent it out or downsize at some point, it shouldn’t be seen as an investment for yourself.
My brother who was self employed never fixed any of his mortgages and paid them at variable rate thought-out the 1990s to 2010, that’s the gamble he took when rates was low.. he paid large chucks into one, while paying the interest only on the others, till one was paid off and then he moved over to the next. At one point he had 4 mortgages.. hardly any pension (even now) that he’s retired, but his house being rented out and his business being leased out his his pension.
The two aspects that you can some what control, that will definitely lower the amount you pay back for your house.. which is the outcome that we all want…. Borrow less money and borrow it for shorter period.. those will have a much greater impact than a few percentage points in the rates.
we here discussing rates but unless one of us is on the BoE board, we have little control over it, apart from spending cash or time to find the best one.
Remember that your house is a tool to keep you and your family safe… unless you are planned to rent it out or downsize at some point, it shouldn’t be seen as an investment for yourself.
